1/5/2011 Top 10 Metals and Mining Stocks - Seeking Alpha

Top 10 Metals and Mining Stocks

by: David Hunkar

September 23, 2009 | about: AU / CSUAY.PK / EMT / GFI / GGB / IMPUY.PK / NILSY.PK / SID / USNZY.PK / VALE

One of the fastest growing sectors in emerging countries is the mining sector. Many of the emerging countries are heavily commodity-based economies.
Russia is dependent on crude oil, Chile is dependent on copper, Brazil for a wide variety of natural resources, South Africa for gold and other precious
metals, etc. As a result, when the prices of commodities rise these emerging markets perform very well.

One way to identify the top mining and metal sector companies in emerging markets is to review an index that specializes in this area. The Dow Jones
Emerging Markets Metals & Mining Titans 30 Index is one such index. It contains 30 of the largest emerging-market companies in the this sector. These
companies are selected based on "rankings by float-adjusted market capitalization, revenue and net profit."

In 2008, this index lost 65%. However this year as of August 31st, it was up by an incredible 90.94%. The current dividend yield is 1.65%. About 50% of the
portfolio is composed of stocks from Brazil and South Africa.

The following is a brief overview of the Top 10 Components in this index:

1. Brazil-based Vale S.A. (VALE) is a steel mining company. Vale pays no regular dividends.Yesterday Rio Tinto Plc of U.K. closed the sale of a mine to
Vale for $750 M.

2. Impala Platinum Holdings Ltd. (IMPUY.PK) owns the world's biggest platinum mine, the Rustenburg mine. Impala mines platinum and other precious
metals.

3. China Shenhua Energy Co. Ltd. (CSUAY.PK) is a Chinese coal miner. It pays a 1.46% dividend.

4. AngloGold Ashanti Ltd. (AU) is one of the largest gold producers in the world with over 21 operations. The company has interests in silver, uranium oxide
and sulphuric acid. Last year's revenue was $3.2B and the stock has a beta of 0.8.

5. Russia-based Norilsk Nickel Mining & Metallurgical Co. (NILSY.PK) is a nickel producer. It pays not regular dividends.

6. Companhia Siderurgica Nacional (SID) is Brazil-based integrated steel producer. The beta is 1.9 and the dividend yield is 3.56%. The average profit margin
last year was about 32% from a revenue of $1.7B.

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1/5/2011 Top 10 Metals and Mining Stocks - Seeking Alpha
7. Gold Fields Ltd. of South Africa (GFI).

8. Gerdau (GGB) is a producer of long rolled steel of Brazil. It has 60 steel producing units worldwide. The beta is high at 2.2. Average annual earning growth
over the past 5 years is about 31%.

9. Jindal Steel & Power Ltd. of India is not listed in the U.S.

10. Usinas Siderurgicas de Minas Gerais (USNZY.PK) is an iron and steel maker in Brazil.

For some of the companies mentioned above, the index contains their preferred shares.I have used the common tickers since common is mostly traded by
investors.

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